Review of 2010 â USD version - Skanska

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The 2010 Annual Meeting approved the introduction of a new Skanska Employee Ownership Plan for 2011–2013 that is essentially identical to the 2008–2010 plan. Long-term Share Award Plan (SAP), 2005–2007 The Skanska Share Award Plan (SAP) applied during 2005–2007, with disbursement in the form of Skanska shares during 2009–2011. The Plan covers about 300 managers. To ensure the delivery of shares to those who are covered by the plan, 300,000 Series D shares held by the Company were converted into Series B shares during 2010. A total of 352,202 Series B shares were transferred to participants in the 2006 program. Skanska Employee Ownership Program, 2008–2010 (SEOP) The purpose of the program is to strengthen the Group’s ability to retain and recruit qualified personnel and to align employees more closely to the Company and its shareholders. The program gives employees the opportunity to invest in Skanska shares while receiving incentives in the form of possible allocation of additional share awards. This allocation is predominantly performance-based. The program runs for three years, 2008–2010, with allotment of shares earned by the employees not taking place until after a three year vesting (or “lock-up”) period, i.e. during the years 2011–2013. To be able to earn matching shares and performance shares, a person must be employed during the entire vesting period and have retained the shares purchased within the framework of the program. At present, 19 percent of the Group’s permanent employees are participating in the program. The cost of the SAP and SEOP programs are presented in the following table USD M SAP SEOP Employee-related costs for share awards 1 Total programs Total preliminary cost of the programs 17.3 94.7 112,0 Expensed January 1 –16.3 –19,7 –36,0 Cost for the year –1.0 –26,5 –27,5 Total expensed December 31 –17.3 –46,2 –63,5 Remaining to be expensed 0.0 48,5 48,5 Of which expensed in 2011 0.0 27,3 27,3 2012 or later 0.0 21,2 21,2 Total 0.0 48,5 48,5 Share awards earned through 2010 Number of shares 1,245,779 3,524,779 4,770,558 Dilution through 2010 0.30% 0.85% 1.15% Maximum dilution at end of programs 0.30% 1.59% 1.89% Share awards earned at end of programs Number of shares 1,245,779 6,818,633 8,064,412 Series B shares distributed 740,167 190,586 930,753 Total undistributed share awards 505,612 6,628,047 7,133,659 Series B shares in own custody 8,253,247 Proposed dividend The Board of Directors proposes a regular dividend of SEK 5.75 (5.25) per share (corresponding to USD 0.85 [0.73]) and an extra dividend of SEK 6.25 (1.00) (corresponding to USD 0.92 [0.14]) per share for the financial year 2010, totaling SEK 12.00 (6.25) per share (corresponding to USD 1.76 [0.87]). The extra dividend proposed by the Board is conditional upon Skanska’s sale of its 50 percent stake in the company that owns the concession for the Autopista Central highway having been completed and the full sale price having been paid. The dividend for 2010 totals an estimated SEK 4,934 (2,582) (corresponding to USD 725.3 M [358.2]). The Board proposes April 8 as the record date for the regular dividend and proposes that the Board be granted authorization by the Annual Shareholders’ Meeting to set the record date for the conditional extra dividend. No dividend is paid for the Parent Company’s holding of its own Series B shares. The total dividend amount may change by the record date, depending on repurchases of shares and transfers of shares to participants in Skanska’s long-term share award plans. Events after the end of the report period To ensure delivery of shares pursuant to Skanska’s Share Award Plan related to the financial year 2007, 490,000 Series D shares were converted to Series B shares. Business plan for 2011–2015 During 2010, Skanska drafted its business plan for 2011–2015. After a consolidation phase, Skanska is now aiming at achieving profitable growth. Skanska will continue to take advantage of the financial synergies of having both construction operations and development operations within the Group and will also use its financial strength and collective global experience. Skanska will continue to strive to be a leader in green construction and project development, health, safety, business ethics, human resource development and risk management. Skanska’s financial targets are a return on equity of 18–20 percent annually, an average operating margin in Construction of 3.5–4.0 percent over a business cycle and a return on capital employed averaging 10–15 percent annually for the combined project development business streams. 1 Excluding social insurance contributions Repurchases of shares In order to ensure delivery of shares to the participants in Skanska’s share incentive programs, the 2010 Annual Shareholders’ Meeting gave the Board of Directors a mandate to repurchase Skanska’s own shares. The decision means that the Company may buy a maximum of 4,500,000 of Skanska’s own Series B shares. During the year, Skanska repurchased a total of 2,110,000 shares at an average price of SEK 119.22 (corresponding to USD 16.54). The average price of all repurchased shares is SEK 105.40 (corresponding to USD 14.62). 82 Report of the Directors Skanska Review of 2010 – USD version
Consolidated income statement USD M Note 2010 2009 Revenue 8,9 16,956.7 18,179.0 Cost of sales 9 –15,229.5 –16,388.0 Gross income 1,727.2 1,791.1 Selling and administrative expenses 11 –1,045.1 –1,055.5 Income from joint ventures and associated companies 20 75.1 52.8 Operating income 10, 12, 13, 22, 36, 38, 40 757.2 788.3 Financial income 47.4 34.2 Financial expenses –52.3 –64.7 Net financial items 14 –4.9 –30.4 Income after financial items 15 752.4 757.9 Taxes 16 –193.5 –206.3 Profit for the year 558.8 551.5 Profit for the year attributable to Equity holders 558.0 550.9 Non-controlling interests 0.8 0.7 Earnings per share, USD 26, 44 after repurchases and conversion 1.35 1.33 after repurchases, conversion and dilution 1.34 1.32 Average number of shares outstanding 26 after repurchases and conversion 412,229,351 415,059,131 after repurchases, conversion and dilution 416,448,523 416,743,454 Skanska Annual Report 2010 Consolidated income statement 83
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Review of 2010 - USD version
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The Skanska Group Senior Executive
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United States 28% Business streams:
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Johan Karlström, Skanska’s Presi
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Our new office building projects ar
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Skanska’s core businesses Constru
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Profitable growth 2011-2015 Skanska
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Performance analysis The Group Reve
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Capital structure Capital requireme
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projects during tender preparation
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Green Refurbishment for value-secur
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Evaluating managers To provide a be
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Skanska share price movement, Janua
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Construction 25 Aviation hangar bec
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increase due to stricter energy and
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In August, a milestone breakthrough
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The London skyline has reached a ne
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Page 37 and 38: and Texas and all the way west to C
Page 39 and 40: Residential Development 37 New home
Page 41 and 42: Stavanger, on the southern coast of
Page 43 and 44: In Ellös on the isle of Orust alon
Page 45 and 46: Ullstorps Gårdar — Country life
Page 47 and 48: 0,6 Commercial Property Development
Page 49 and 50: The City Green Court office buildin
Page 51 and 52: Green Lustgården started Poland -
Page 53 and 54: 1 4 5 5 Illustration Tyfonen Illust
Page 55 and 56: Infrastructure Development 55 New K
Page 57 and 58: At the end of 2010, Skanska signed
Page 59 and 60: To win the New Karolinska Solna pro
Page 61 and 62: Two London hospitals, Barts and the
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Page 65 and 66: Sustainable development 64 Blå Jun
Page 67 and 68: Safety starts with planning Skanska
Page 69 and 70: The Skanska Color Palette TM is now
Page 71 and 72: Sustainable procurement Over 80 per
Page 73 and 74: Skanska Financials 2010 The financi
Page 75 and 76: North America and Latin America Dur
Page 77 and 78: Earnings per share USD 1.6 Investme
Page 79 and 80: Material risks and uncertainty fact
Page 81 and 82: The members and deputy members of t
Page 83 and 84: Skanska’s management structure Se
Page 85: the World Business Council for Sust
Page 89 and 90: Consolidated statement of financial
Page 91 and 92: Consolidated statement of changes i
Page 93 and 94: Consolidated operating cash flow st
Page 95 and 96: Note 01 Consolidated accounting and
Page 97 and 98: Note 01 Continued IFRS 5, “Non-cu
Page 99 and 100: Note 01 Continued Further expenditu
Page 101 and 102: Note 01 Continued The obligation is
Page 103 and 104: Infrastructure Development Skanska
Page 105 and 106: Note 03 Continued Statement of comp
Page 107 and 108: Note 03 Continued Operating cash fl
Page 109 and 110: Note 03 Continued Segments, January
Page 111 and 112: Note 04 Continued Construction Resi
Page 113 and 114: Note 04 Continued External revenue
Page 115 and 116: Note 06 Continued earnings and cash
Page 117 and 118: Note 06 Continued The role of finan
Page 119 and 120: Note 06 Continued Reconciliation wi
Page 121 and 122: Note 06 Continued Collateral The Gr
Page 123 and 124: Note 12 Depreciation/amortization D
Page 125 and 126: Note Not 16 Income taxes 14 Net fin
Page 127 and 128: Note 17 Property, plant and equipme
Page 129 and 130: Note 18 Continued Goodwill impairme
Page 131 and 132: Note 20 Continued Specification of
Page 133 and 134: Note 22 Current-asset properties/Pr
Page 135 and 136: Note 26 Equity/earnings per share I
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Note 27 Financial liabilities Finan
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Note 28 Continued Actuarial assumpt
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Note 31 Specification of interest-b
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Note 33 Assets pledged Assets pledg
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Note 34 Continued Consolidated stat
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Note 35 Continued Relation between
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Note 37 Remuneration to senior exec
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Note 37 Continued Remuneration and
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Note Business unit Infrastructure D
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Note 42 Consolidated quarterly resu
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Note 43 Continued Statements of fin
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Note 44 Definitions Average capital
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Statement by the President and Chie
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Skanska Review of 2010 - USD versio
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The new environmentally advanced he
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Mike McNally Veronica Rörsgård Ro
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Richard Hörstedt Helsingborg, born
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May - August 2010 5/7/2010 Skanska
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November - December 2010 11/2/2010
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More information about Skanska Worl
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Annual Shareholders’ Meeting Inve
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Review of 2010 â USD version - Skanska